hostname -f
should display the hostname as fqdn, if not this should be corrected.
I always thought that the hostname aliases in /etc/hosts were not order dependent but the first one appears to be used as your domainname and should match myhostname in main.cf. Once I did this everything worked just fine.
Hope i could help
Olli
Thank you Olli - you're an O/S saver - I just about moved to a different distro over this!